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Kinder Morgan Announces Terminal Venture Designed To Handle Renewable Fuels - Quick Facts

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Kinder Morgan Energy Partners, L.P. (KMP) announced a terminal venture designed specifically to handle renewable fuels.

The company stated that the transaction includes KMP's acquisition of three unit train ethanol handling terminals in Linden, N.J., Baltimore, Md., and Dallas, Texas, from U.S. Development Group or USD, and the formation of a joint venture to coordinate access to these terminals.

The acquisition price for the terminals was approximately $195 million, including over $80 million in KMP equity issued to the seller, the company said.

Upon closing, the transaction is expected to be immediately accretive to cash distributable to KMP unitholders. Combined with other acquisitions and projects already completed or underway, KMP has invested approximately $500 million in the renewable fuels handling business.

The three unit train terminals acquired, together with KMP's existing ethanol terminal assets, will create a nationwide distribution network of ethanol handling facilities connected by rail, marine, truck and pipeline, the company said.

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